Caribbean Tourism & the Global MarketTowards increased linkages & competitiveness :: Scott Wayne

Investment Climate 1

Caribbean Tourism & the Global MarketTowards increased linkages & competitiveness

Presented by:Scott Wayne, President

SW Associates – Sustainable Development through Tourism

THE WORLD BANKWorld Bank Group Multilateral Investment Guarantee Agency

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Agenda

Global Tourism Overview & Trends

Caribbean Tourism Overview & Trends

Opportunities & Challenges

Examples in and beyond the Caribbean

Next Steps & Key Questions

Investment Climate 3

TRAVEL & TOURISM INDUSTRY

Accommodation, recreation, catering, entertainment, transportation, and other related services

TRAVEL & TOURISM ECONOMY

Printing/Publishing,concrete, utilities, financial services, furnishing & equipment suppliers, foods, security, administration, ship building, beverage supply, iron/steel, aircraft manufacturing,wood, mining, chemicals, textiles, oil/gas suppliers, plastics, sanitation services, metal products, computers, resort development, wholesalers, rental car manufacturing, laundry services.

Tourism is Everybody’s Business!

It is among the top five industries. But this is not widely

understood!


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Tourism is Everybody’s Business


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Florist Architectural & Construction services

Furniture makersFlooring

supplier

Lighting supplierCleaning

supplies & services

IT equipment, training & services

Accounting

services

Electrician & supplies

Office supplies

Laundry services & supplies

Local produceLocal poultry

Local meat & fish

Local crafts

Local beverages


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People in Tourism - Jobs


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Opportunities for Linkages?

What are the opportunities for linkages in your areas of expertise?


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Global Tourism Overview

UNWTO forecasting 3-4% increase in arrivals for 2012

1 billion international tourists in 2012

More than US$1 trillion in international tourism receipts

More than US$2 trillion in direct GDP, +5%

98 mn jobs = 1 in 12 jobs, 6% of direct

30% of global services exports and 6% of all exports

Sources: UNWTO/WTTC


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International Arrivals & Receipts Growth

Source: UNWTO


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Americas 16% of Arrivals & 20% of Receipts

Source: UNWTO


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Top 10 Destinations

Source: UNWTO


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Top International Tourism Spenders (2011)

Source: UNWTO


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Americas Tourism Overview (2010-11)

Source: UNWTO


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Key Global Trends Driving Tourism Growth

Brand, product and price important, but more travelers willing to try new destinations and experiences.

BRIC country travelers spending more on International travel.

Fastest growth among top 50 in arrivals 2010/11: Saudi Arabia (60%), Thailand (20%), Kazakhstan (20%), Finland (14%), Singapore (13%), and South Korea (11%).

More destination choices for more travelers.

More competition among destinations.

Air travel increased 7% and capacity 8% in 2011

Sources: UNWTO/WTTC


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Caribbean Tourism Statistics

International Tourist Arrivals (2011) = 20.9 mn

International Tourism Receipts = US$24.5 billion

Direct GDP Contribution = US$15 billion

Total GDP Contribution = US$47 billion

Direct Jobs created = 614,000 = 3.8%

Sources: UNWTO and WTTC

$32 billion indirect


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Almost 21 mn arrivals with 75% concentrated in seven destinations

Sources: UNWTO/WTTC


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Caribbean Key Tourism Trends

Fastest Growth in Arrivals: Turks & Caicos 26%, Curacao 14%, Cuba and Cayman Islands 7.2%, Grenada 7.1%, Anguilla 6%, and Antigua 5%.

OECS Regional Tourism Policy 10 Areas Covered Priorities are: Investment, Tourism Awareness, Research and Statistics, Air Transport, and Marketing.

Latin American market to Caribbean growing – 8% growth in air traffic in 2011.

Pressure to have distinctive brand and product, but competition is fierce in Caribbean and beyond.


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Product Competition is fierce!


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Caribbean Tourism Product Offers

Sun and Sand

Destination Resorts & Hotels

Nature-based

Soft adventure

Ecotourism

Marine activities

Cultural/heritage

Music and other events

Plantation tours

Honeymoons & Weddings

Cruise ports & yachting


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Challenges & Opportunities

Infrastructure Transport, accommodations, waste management, energy management.

Human resources Skilled workforce, education system, domestic tourism awareness

Marketing & Product Targeted, well researched marketing based on product offers in demand by segments.

Policy & Investment Public-Private Partnerships, public policy that reduces barriers and invests in tourism, investment incentives. Coordination between government agencies and between countries.


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Challenges & Opportunities

Challenges

Increasing airlift

Managing increased cruise arrivals

Distressed assets

Ongoing need to improve HR quality, education

Depends on product offers, targeted research & marketing and HR capacity to deliver

Coordination of national and region policy to minimize barriers, maximize benefits

Opportunities

PPPs for airport improvements

Cruise strategies

Regional Distressed Asset Fund

Tap distance learning and voluntourism as interim solutions

PPPs for more targeted research

Regional Policy & CTO/CHTA


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Curacao – Room Tax up, Tourism up

367k arrivals in 2009342k 2010390k 2011

Room tax applied to all short term rental properties increased from 5 to 7% beginning of 2010

All room tax revenue used for promoting Curacao.

About.com readers vote Curacao #1 2012

2011/10 27% increase in North American Market

Increased flights from Europe and Canada as airport modernized

Increased targeted marketing to niches such as gay travel and Jewish heritage.

New international brand hotels such as Hyatt and Renaissance.


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Turks & Caicos – Airlift increase, Tourism up

281k arrivals in 2010354k in 2011

Jetblue and Continental increased flights from NY and NJ

Direct flts from Nova Scotia to increase 2012 arrivals

High end catering to private jets and large yachts

No taxes

Proximity to US

Substantial duty free concessions

Increased accessibility Increased investment & development


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Maldives


Well positioned as high end, diving destination

International brand properties

Stunning beaches

Large advertising budget

35% tax on tourism

Increased marketing to China56%+

Cooperation w/Sri Lanka & Seychelles regional marketing

All visas removed for tourists


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Mauritius


Receipts jumped from US$1 bn to $1.4 bn.

Beautiful beaches and diving

Romance segment

International brands

At US$1567, on a par with highest yielding Caribbean destinations.

$395mn stimulus package by Min Finance

Aggressive marketing

Regional cooperation


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Seychelles

175k in 2010194k in 2011

Receipts from $274 mn in 2010 to $291 mn in 2011.

Well represented in UK

Royal honeymoon destination

Strong romance destination

97%+ from China

Increase in flights on Qatar and Emirates

Visa requirements removed for all tourists.

Affordable Seychelles Campaign


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Next Steps and Key Questions


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OECS Regional Policy Recommendations

Competitive analysis of region’s tourism, focusing on increase investment to OECS region

Regional Tourism Awareness campaign implemented nationally in OECS Member States

Joint representation at major trade shows

Airlift capacity assessment of needs to guide OECS Member States’ efforts

Tourism Satellite Accounts (TSAs) in OECS Member States

Improving the ED cards used in Member States with a view to adopting a standardized and more visitor-friendly card


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Strategic Framework for Tourism Competitiveness

Building on St Lucia Tourism Policy, Work Programme, Strategy and Vision Plan

Benchmarking for Competitiveness and Strategic Tourism Investments

Value-chain based – Quality and Pricing of Tours, Food & Beverages, Flights and Customer Service

World Economic Forum Tourism Competitiveness Index 14 Pillars

Tourism Satellite Account

Market-oriented rankings


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Competitiveness Framework


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Key Questions

What policy “levers” need to be pulled to increase competitiveness and reduce barriers to growth and investment?

What roles can other sectors play in maximizing the growth potential and opportunities of tourism?

Taxes, airlift subsidies, tax holidays…How much is too much?

Economy & Finance

Caribbean Tourism & the Global MarketTowards increased linkages & competitiveness :: Scott Wayne